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− | Imperial Tobacco Group is the fifth largest company participating in the global tobacco market and controls 3.7 percent of the international cigarette market. <ref> Euromonitor International [database on the Internet]. Cigarettes. Euromonitor International; c 2018. </ref> Imperial operates in more than 160 markets, and key growth markets are in Italy, Russia, Japan, and Saudi Arabia. | + | Imperial Tobacco Group is a British company. It is the fifth largest company participating in the global tobacco market and controls 3.7 percent of the international cigarette market. <ref> Euromonitor International [database on the Internet]. Cigarettes. Euromonitor International; c 2018. </ref> Imperial operates in more than 160 markets, and key growth markets are in Italy, Russia, Japan, and Saudi Arabia. {{r|IB_2017_AR}} <ref>Imperial Brands. About Us. 2018. Available from: www.imperialbrandsplc.com/About-us.html.</ref> Top brands include West, Davidoff, John Player Special, and Gauloises. <ref> Euromonitor International [database on the Internet]. Cigarettes. Euromonitor International; c 2018. </ref> In 2016, Imperial Tobacco was the world’s fifth-largest international cigarette company based on market share. <ref name="IB_Statista">Statista, [https://www.statista.com/topics/3221/imperial-brands-plc/ Imperial Brands - Statistics & Facts], Accessed September 2018 </ref> |
− | <ref | ||
− | <ref name="IB_Statista">Statista, [ | ||
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==Company Overview== | ==Company Overview== | ||
− | Imperial Brands is a FTSE 100 company headquartered in Bristol in the United Kingdom. Imperial Brands consists of five distinct entities: Imperial Tobacco, Tabacalera, ITG Brands, Fontem Ventures and Logista. <ref name="IB_TransparencyRegister"> Transparency Register, [ | + | Imperial Brands is a FTSE 100 company headquartered in Bristol in the United Kingdom. Imperial Brands consists of five distinct entities: Imperial Tobacco, Tabacalera, ITG Brands, Fontem Ventures and Logista. <ref name="IB_TransparencyRegister"> Transparency Register, [http://ec.europa.eu/transparencyregister/public/consultation/displaylobbyist.do?id=71175716023-03 Imperial Brands PLC], Accessed September 2018 </REF> |
The core business is built around a tobacco portfolio that offers a comprehensive range of cigarettes (e.g. Davidoff, Gauloises), fine cut (e.g. Drum, Golden Virginia) and smokeless tobaccos (e.g. skruf), papers (e.g. Rizla) and cigars (e.g. Montecristo, Cohiba). Through the Fontem Ventures business, Imperial Brands are also developing a portfolio of brands beyond tobacco, including the e-vapour brand blu. {{r|IB_TransparencyRegister}} | The core business is built around a tobacco portfolio that offers a comprehensive range of cigarettes (e.g. Davidoff, Gauloises), fine cut (e.g. Drum, Golden Virginia) and smokeless tobaccos (e.g. skruf), papers (e.g. Rizla) and cigars (e.g. Montecristo, Cohiba). Through the Fontem Ventures business, Imperial Brands are also developing a portfolio of brands beyond tobacco, including the e-vapour brand blu. {{r|IB_TransparencyRegister}} | ||
===Key Executives=== | ===Key Executives=== | ||
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{| class="wikitable" | {| class="wikitable" | ||
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! style="font-weight:bold; width:50%" |Bio | ! style="font-weight:bold; width:50%" |Bio | ||
|- | |- | ||
− | | | + | |Alison Cooper, BSC, ACA |
|Chief Executive Officer | |Chief Executive Officer | ||
− | | | + | |Since being appointed as Chief Executive Alison has led the development and implementation of the Group’s sustainable sales growth strategy. Alison joined the Group in 1999 and, through a number of senior roles, has contributed significantly to the international expansion of the Group. |
''Appointment:'' | ''Appointment:'' | ||
− | Appointed | + | Appointed Director in July 2007. Appointed Chief Executive in May 2010. |
''External Appointments:'' | ''External Appointments:'' | ||
− | + | None.{{r|IB_WEB_LEADERSHIP}} | |
|- | |- | ||
− | | | + | |Oliver Tant, BSC, CA (SCOTLAND) |
|Chief Financial Officer | |Chief Financial Officer | ||
− | | | + | |Oliver held a number of senior positions in a 32-year career at KPMG, including Global Managing Director Financial Advisory and Private Equity Division and Head of UK Audit. He was also a member of both the UK and German boards of KPMG. He brings to Imperial international experience in change management, organizational restructuring, corporate finance and mergers and acquisitions. |
+ | ''Appointment:'' | ||
+ | Appointed to the Board of Directors in October 2013 and became Chief Financial Officer in November 2013.{{r|IB_WEB_LEADERSHIP}} | ||
|- | |- | ||
− | | | + | |Matthew Phillips, LLB |
− | |Chief | + | |Chief Development Officer |
− | | | + | |Matthew held a number of senior roles prior to his appointment to the Board as Corporate Affairs Director in June 2012 and has been integral to the development and implementation of the Group's strategy. In his current role he is responsible for Next Generation Product innovation, product science, smokeless tobacco, corporate development and corporate and legal affairs. |
+ | ''Appointment:'' | ||
+ | Appointed Director in June 2012. Appointed Chief Development Officer, June 2015.{{r|IB_WEB_LEADERSHIP}} | ||
|- | |- | ||
|Joerg Biebernick | |Joerg Biebernick | ||
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|Joerg has considerable brand marketing and general management experience built during a 25-year career in Europe and the US. Prior to joining Imperial, Joerg served as President, Latin America for Kimberly Clark. He has also held senior positions working in the consumer goods sector for both Georgia Pacific and Procter & Gamble. In addition to managing the Returns Division, Joerg has responsibility for Market Repeatable Model and the Imperial Tobacco brand portfolio. Joerg joined Imperial in November 2017.{{r|IB_WEB_LEADERSHIP}} | |Joerg has considerable brand marketing and general management experience built during a 25-year career in Europe and the US. Prior to joining Imperial, Joerg served as President, Latin America for Kimberly Clark. He has also held senior positions working in the consumer goods sector for both Georgia Pacific and Procter & Gamble. In addition to managing the Returns Division, Joerg has responsibility for Market Repeatable Model and the Imperial Tobacco brand portfolio. Joerg joined Imperial in November 2017.{{r|IB_WEB_LEADERSHIP}} | ||
|- | |- | ||
− | | | + | |Dominic Brisby |
− | | | + | |Division Director, Growth |
− | | | + | |Dominic leads the Growth Division, which includes selected markets in the EU, Eastern Europe, Asia, and the Middle East and also incorporates the USA and Premium Cigar Division. He previously led the Returns Division. Prior to becoming a Division Director in 2013, Dominic held a number of international general management roles at Imperial and has been responsible for businesses in the Czech Republic, Poland and Iberia. Appointed Growth Division Director in November 2017.{{r|IB_WEB_LEADERSHIP}} |
|- | |- | ||
− | | | + | |Richard Hill |
− | | | + | |Group Commercial Director, Vapour |
− | | | + | |Richard has 30 years of international experience in consumer goods and banking. After an early career leading sales & marketing teams in Europe, he performed global CFO roles in both Allied Domecq and Standard Chartered. He was President and CEO of SC First Bank, South Korea’s largest foreign investor and has held several public non-executive board positions. In his current role he leads the Fontem Ventures Amsterdam team, which is focused on the development of vapour commercial strategies and branding. Richard was appointed to his current role in April 2018. He previously headed up Group Transformation and HR, having joined Imperial in October 2016. {{r|IB_WEB_LEADERSHIP}} |
|- | |- | ||
− | | | + | |Amal Pramanik |
− | | | + | |Group Strategy Director |
− | | | + | |Amal is a qualified executive coach and has mentored senior managers across the world on a variety of operational and leadership themes. His role includes overall responsibility for Group Transformation and HR. Appointed as Strategy Director in November 2017 having joined the Operating Executive in 2016.{{r|IB_WEB_LEADERSHIP}} |
|- | |- | ||
− | | | + | |Walter Prinz |
|Group Manufacturing & Supply Chain Director | |Group Manufacturing & Supply Chain Director | ||
− | | | + | |Walter has overall responsibility for all tobacco and Next Generation Product manufacturing and supply chain operations. He joined Reemtsma in 1987 and has held a number of senior roles. Prior to his appointment to the Operating Executive, Walter was Director of Product Development and Purchasing. Appointed Group Manufacturing, Research & Development Director in October 2010, taking on additional responsibility for Supply Chain in October 2014.{{r|IB_WEB_LEADERSHIP}} |
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===Board Members=== | ===Board Members=== | ||
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{| class="wikitable" | {| class="wikitable" | ||
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! style="font-weight:bold; width:50%" |Bio | ! style="font-weight:bold; width:50%" |Bio | ||
|- | |- | ||
− | | | + | |Mark Williamson, CA (SA) |
|Chairman of the Board | |Chairman of the Board | ||
− | | | + | |Mark was Chief Financial Officer of International Power plc until 2012 and is experienced in managing relationships with the investor and financial communities. He is also a former Senior Independent Non-Executive Director and Chairman of the Audit Committee of Alent plc. He joined the Board in July 2007 and was appointed Senior Independent Non-Executive Director in February 2012. He was subsequently appointed Deputy Chairman of the Board in January 2013 before being made Chairman in February 2014. |
''Committee Membership:'' | ''Committee Membership:'' | ||
− | + | Chairman of the Succession and Nominations Committee. | |
− | |||
''External Appointments:'' | ''External Appointments:'' | ||
− | + | Chairman of Spectris plc; Senior Independent Non-Executive Director and Chairman of the Audit Committee of National Grid plc. {{r|IB_WEB_LEADERSHIP}} | |
− | |||
|- | |- | ||
− | | | + | |Alison Cooper, BSC, ACA |
|Chief Executive Officer | |Chief Executive Officer | ||
− | | | + | |Since being appointed as Chief Executive Alison has led the development and implementation of the Group’s sustainable sales growth strategy. Alison joined the Group in 1999 and, through a number of senior roles, has contributed significantly to the international expansion of the Group. Appointed Director in July 2007. Appointed Chief Executive in May 2010. {{r|IB_WEB_LEADERSHIP}} |
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− | Appointed | ||
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|- | |- | ||
− | | | + | |Oliver Tant, BSC, CA (SCOTLAND) |
|Chief Financial Officer | |Chief Financial Officer | ||
− | | | + | |Oliver held a number of senior positions in a 32-year career at KPMG, including Global Managing Director Financial Advisory and Private Equity Division and Head of UK Audit. He was also a member of both the UK and German boards of KPMG. He brings to Imperial international experience in change management, organizational restructuring, corporate finance and mergers and acquisitions. Appointed to the Board of Directors in October 2013 and became Chief Financial Officer in November 2013.{{r|IB_WEB_LEADERSHIP}} |
|- | |- | ||
− | | | + | |Matthew Phillips, LLB |
+ | |Chief Development Officer | ||
+ | |Matthew held a number of senior roles prior to his appointment to the Board as Corporate Affairs Director in June 2012 and has been integral to the development and implementation of the Group's strategy. In his current role he is responsible for Next Generation Product innovation, product science, smokeless tobacco, corporate development and corporate and legal affairs. Appointed Director in June 2012. Appointed Chief Development Officer, June 2015.{{r|IB_WEB_LEADERSHIP}} | ||
+ | |- | ||
+ | |Therese Esperdy | ||
|Non-Executive Director | |Non-Executive Director | ||
− | | | + | |Therese has significant international investment banking experience having held a number of roles at JP Morgan including Global Chairman of JP Morgan’s Financial Institutions Group, Co-Head of Asia-Pacific Corporate & Investment Banking, Global Head of Debt Capital Markets, and Head of US Debt Capital Markets. She began her career at Lehman Brothers and joined Chase Securities in 1997 prior to the firm's merger with JP Morgan in 2000. Appointed Non-Executive Director in July 2016. |
''Committee Membership:'' | ''Committee Membership:'' | ||
Line 110: | Line 92: | ||
''External Appointments:'' | ''External Appointments:'' | ||
− | Chairman of | + | Non-Executive Director and Chairman of the Finance Committee of National Grid Plc.{{r|IB_WEB_LEADERSHIP}} |
|- | |- | ||
− | | | + | |Simon Langelier |
|Non-Executive Director | |Non-Executive Director | ||
− | | | + | |Simon has significant international experience within the tobacco industry. He held a number of senior commercial positions during a 30-year career with [[Philip Morris International]], including in Latin America, Asia, Western and Eastern Europe, Middle East and Africa. In addition, he was President of their Next Generation Products & Adjacent Businesses. Appointed Non-Executive Director in June 2017. |
+ | |||
''Committee Membership:'' | ''Committee Membership:'' | ||
Member of the Audit Committee and the Succession & Nominations Committee. | Member of the Audit Committee and the Succession & Nominations Committee. | ||
+ | |||
''External Appointments:'' | ''External Appointments:'' | ||
− | + | Chairman of PharmaCielo Limited; Ambassador of Lancaster University.{{r|IB_WEB_LEADERSHIP}} | |
|- | |- | ||
− | | | + | |Steven Stanbrook |
− | | | + | |Non-Executive Director |
− | | | + | |Steven brings considerable international executive experience to the Board, gained in a number of FMCG companies. This includes 18 years at SC Johnson & Son Inc., most recently as Chief Operating Officer, where he was responsible for managing their international operations. |
− | + | Steven is a partner of Wind Point Partners and a Director of both Autism Speaks and The Vollrath Company, LLC. Previously he held senior positions at Sara Lee Corporation, including as Chief Executive Officer of Sara Lee Bakery and at CompuServe Corp. He is also a former Non-Executive Director of Chiquita Brands International, Inc. and Hewitt Associates. Appointed Non-Executive Director in February 2016 | |
− | Appointed Non-Executive Director | ||
''Committee Membership:'' | ''Committee Membership:'' | ||
− | + | Member of the Remuneration Committee and the Succession & Nominations Committee.{{r|IB_WEB_LEADERSHIP}} | |
+ | |- | ||
+ | |Karen Witts, FCA | ||
+ | |Non-Executive Director | ||
+ | |Karen brings significant financial and management expertise to the Board. She is currently Chief Financial Officer and Executive Director of Kingfisher plc and was previously Chief Financial Officer of the Africa, Middle East, Asia and Asia Pacific Region, at Vodafone plc. Prior to that, Karen held a number of senior positions at BT, including Chief Financial Officer of BT Retail and Managing Director Operations Openreach. Appointed Non-Executive Director in February 2014 and Chairman of the Audit Committee in February 2017. | ||
− | '' | + | ''Committee Membership:'' |
− | + | Chairman of the Audit Committee and member of the Succession and Nominations Committee and the Remuneration Committee. | |
+ | |||
+ | ''External Appointments:'' | ||
+ | Chief Financial Officer and Executive Director of Kingfisher plc.{{r|IB_WEB_LEADERSHIP}} | ||
+ | |- | ||
+ | |Malcolm Wyman, CA (SA) | ||
+ | |Senior Independent Non-Executive Director | ||
+ | |As a qualified accountant and former Chief Financial Officer of SAB Miller plc, with responsibility for the group’s financial operations, corporate finance and development and group strategy, Malcolm brings not only a wealth of financial expertise but also considerable general management experience to the Board. He also meets the recent and relevant financial experience requirements of the UK Corporate Governance Code. Appointed Non-Executive Director in October 2011, and Senior Independent Non-Executive Director in February 2017. Appointed Chairman of the Remuneration Committee in July 2018. Chairman of the Audit Committee from February 2012 to February 2017. | ||
+ | |||
+ | ''Committee Membership:'' | ||
+ | Chariman of the Remuneration Committee and member of the Succession and Nominations Committee. | ||
+ | |||
+ | ''External Appointments:'' | ||
+ | Senior Independent Non-Executive Director and former Chairman of the Audit Committee of Nedbank Group Limited, listed on the Johannesburg Stock Exchange.{{r|IB_WEB_LEADERSHIP}} | ||
|- | |- | ||
− | |John Downing | + | |John Downing, MA, SOLICITOR |
|Company Secretary | |Company Secretary | ||
|John joined Imperial in 2005 having worked for the law firm Linklaters. He has had a number of senior legal roles in Imperial including playing a leading role in the Altadis acquisition and becoming Head of Group Legal in 2010. He has considerable experience in managing key corporate projects related to financing, business development and other commercial matters. In addition to his Group Company Secretary role, John also has responsibility for the Group's governance, Code of Conduct, security and information security. | |John joined Imperial in 2005 having worked for the law firm Linklaters. He has had a number of senior legal roles in Imperial including playing a leading role in the Altadis acquisition and becoming Head of Group Legal in 2010. He has considerable experience in managing key corporate projects related to financing, business development and other commercial matters. In addition to his Group Company Secretary role, John also has responsibility for the Group's governance, Code of Conduct, security and information security. | ||
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''Appointment:'' | ''Appointment:'' | ||
Appointed Company Secretary in June 2012.{{r|IB_WEB_LEADERSHIP}} | Appointed Company Secretary in June 2012.{{r|IB_WEB_LEADERSHIP}} | ||
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|} | |} | ||
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− | ====Incorporated Subsidiaries==== | + | ====Incorporated Subsidiaries (overseas, partly owned)==== |
{| class="wikitable sortable" | {| class="wikitable sortable" | ||
− | ! style="font-weight:bold; width: 30%;" | Subsidiary Name {{r| | + | ! style="font-weight:bold; width: 30%;" | Subsidiary Name {{r|IB_2017_AR|p=137-140}} |
− | ! style="font-weight:bold;" | Country | + | ! style="font-weight:bold;" | Country {{r|IB_2017_AR|p=137-140}} |
− | ! style="font-weight:bold;" | Principal activity {{r| | + | ! style="font-weight:bold;" | Principal activity {{r|IB_2017_AR|p=137-140}} |
− | ! style="font-weight:bold;" | Registered address {{r| | + | ! style="font-weight:bold;" | Registered address {{r|IB_2017_AR|p=137-140}} |
− | ! style="font-weight:bold; width: 10%;" | Interest amount (percent) {{r| | + | ! style="font-weight:bold; width: 10%;" | Interest amount (percent) {{r|IB_2017_AR|p=137-140}} |
|- | |- | ||
| Be To Be Pharma, S.L | | Be To Be Pharma, S.L | ||
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{| class="wikitable sortable" | {| class="wikitable sortable" | ||
− | ! style="font-weight:bold;" | Subsidiary Name {{r| | + | ! style="font-weight:bold;" | Subsidiary Name {{r|IB_2017_AR|p=130-131}} |
− | ! style="font-weight:bold; width: 35%;" |Principal activity {{r| | + | ! style="font-weight:bold; width: 35%;" |Principal activity {{r|IB_2017_AR|p=130-131}} |
− | ! style="font-weight:bold; width: 30%;" |Registered address {{r| | + | ! style="font-weight:bold; width: 30%;" |Registered address {{r|IB_2017_AR|p=130-131}} |
|- | |- | ||
| Attendfriend Limited | | Attendfriend Limited | ||
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====Incorporated Overseas (Wholly Owned)==== | ====Incorporated Overseas (Wholly Owned)==== | ||
{| class="wikitable sortable" | {| class="wikitable sortable" | ||
− | ! style="font-weight:bold; width: 35%;" |Subsidiary Name {{r| | + | ! style="font-weight:bold; width: 35%;" |Subsidiary Name{{r|IB_2017_AR|p=131-137}} |
− | ! style="font-weight:bold; width: 15%;" |Country {{r| | + | ! style="font-weight:bold; width: 15%;" |Country{{r|IB_2017_AR|p=131-137}} |
− | ! style="font-weight:bold; width: 30%;" |Principal activity {{r| | + | ! style="font-weight:bold; width: 30%;" |Principal activity{{r|IB_2017_AR|p=131-137}} |
− | ! style="font-weight:bold; width: 25%;" |Registered address {{r| | + | ! style="font-weight:bold; width: 25%;" |Registered address{{r|IB_2017_AR|p=131-137}} |
|- | |- | ||
| 800 JR Cigar Inc | | 800 JR Cigar Inc | ||
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|} | |} | ||
− | === | + | ===2018 Forecast=== |
− | In | + | In September 2018, Reuters reported Imperial Brands expects alternatives to smoking such as vaping pens and a heated tobacco device to add up to 1.5 billion pounds to its revenues by 2020. Imperial has estimated the e-cigarette market could exceed USD 30 billion by 2020, up from around USD 4 billion now. <ref>[https://www.reuters.com/article/us-imperial-brands-strategy/imperial-brands-eyes-2-billion-boost-from-vaping-products-idUSKCN1M50ZP Imperial Brands eyes $2 billion boost from vaping products], ''Reuters'', September 2018, Accessed 2018 </ref> |
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==Profitability== | ==Profitability== | ||
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According to Imperial's website, Priority Growth Markets are characterised by large profit and/or volume pools with shares below 15 per cent and a real potential for long-term share and profit growth. The website lists the following countries: Italy, Japan, Russia, Saudi Arabia. {{r|IB_WEB_MARKET-FOOTPRINT}} | According to Imperial's website, Priority Growth Markets are characterised by large profit and/or volume pools with shares below 15 per cent and a real potential for long-term share and profit growth. The website lists the following countries: Italy, Japan, Russia, Saudi Arabia. {{r|IB_WEB_MARKET-FOOTPRINT}} | ||
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Imperial has relatively large shares in Returns Markets, mostly above 15 percent. The focus is on managing strong positions in these markets, whilst driving sustainable profit growth. Priority Returns Markets include Australia, France,United Kingdom, Germany, Spain. {{r|IB_WEB_MARKET-FOOTPRINT}} | Imperial has relatively large shares in Returns Markets, mostly above 15 percent. The focus is on managing strong positions in these markets, whilst driving sustainable profit growth. Priority Returns Markets include Australia, France,United Kingdom, Germany, Spain. {{r|IB_WEB_MARKET-FOOTPRINT}} | ||
− | === | + | ===Annual Trends=== |
{| class="wikitable" | {| class="wikitable" | ||
! Tobacco Segment | ! Tobacco Segment | ||
(in millions GBP) | (in millions GBP) | ||
− | ! style="text-align: center;" | | + | ! style="text-align: center;" | 2017 {{r|IB_2017_AR|p=91}} |
− | + | ! style="text-align: center;" | 2016 {{r|IB_2016_AR|p=90}} | |
− | + | ! style="text-align: center;" | 2015 {{r|IB_2015_AR|p=85}} | |
− | ! style="text-align: center;" | 2016 {{r| | ||
− | ! style="text-align: center;" | 2015 {{r| | ||
! style="text-align: center;" | 2014 (Restated) {{r|IB_2015_AR|p=85}} | ! style="text-align: center;" | 2014 (Restated) {{r|IB_2015_AR|p=85}} | ||
! style="text-align: center;" | 2014 {{r|IB_2014_AR|p=83}} | ! style="text-align: center;" | 2014 {{r|IB_2014_AR|p=83}} | ||
+ | ! style="text-align: center;" | 2013 {{r|IB_2013_AR|p=98}} | ||
+ | |- | ||
+ | | Revenue | ||
+ | | 22,786 | ||
+ | | 20,890 | ||
+ | | 19,011 | ||
+ | | 19,501 | ||
+ | | 19,656 | ||
+ | | 20,881 | ||
|- | |- | ||
| Net revenue | | Net revenue | ||
− | |||
− | |||
| 7,757 | | 7,757 | ||
| 7,167 | | 7,167 | ||
Line 1,651: | Line 1,639: | ||
| 6,421 | | 6,421 | ||
| 6,576 | | 6,576 | ||
+ | | 7,007 | ||
|- | |- | ||
| Operating profit | | Operating profit | ||
− | |||
− | |||
| 2,199 | | 2,199 | ||
| 2,126 | | 2,126 | ||
Line 1,660: | Line 1,647: | ||
| 1,925 | | 1,925 | ||
| 1,970 | | 1,970 | ||
+ | | 1,888 | ||
|- | |- | ||
− | | | + | | Adjusted operating profit |
− | |||
− | |||
| 3,595 | | 3,595 | ||
| 3,360 | | 3,360 | ||
Line 1,669: | Line 1,655: | ||
| 2,805 | | 2,805 | ||
| 2,850 | | 2,850 | ||
+ | | 3,003 | ||
|- | |- | ||
+ | | Adjusted operating margin percentage | ||
+ | | 46.3 | ||
+ | | 46.9 | ||
+ | | 46.3 | ||
+ | | 43.7 | ||
+ | | 43.3 | ||
+ | | 42.9 | ||
|} | |} | ||
− | ===Profits Per Reportable Segments | + | ===Profits Per Reportable Segments=== |
====Growth Markets==== | ====Growth Markets==== | ||
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! Growth Markets | ! Growth Markets | ||
(in millions GBP) | (in millions GBP) | ||
− | ! style="text-align: center;" | 2017 {{r| | + | ! style="text-align: center;" | 2017 {{r|IB_2017_AR|p=91-92}} |
! style="text-align: center;" | 2016 {{r|IB_2016_AR|p=90-91}} | ! style="text-align: center;" | 2016 {{r|IB_2016_AR|p=90-91}} | ||
! style="text-align: center;" | 2015 {{r|IB_2015_AR|p=85-86}} | ! style="text-align: center;" | 2015 {{r|IB_2015_AR|p=85-86}} | ||
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! Returns Markets North | ! Returns Markets North | ||
(in millions GBP) | (in millions GBP) | ||
− | ! style="text-align: center;" | 2017 {{r| | + | ! style="text-align: center;" | 2017 {{r|IB_2017_AR|p=91-92}} |
! style="text-align: center;" | 2016 {{r|IB_2016_AR|p=90-91}} | ! style="text-align: center;" | 2016 {{r|IB_2016_AR|p=90-91}} | ||
! style="text-align: center;" | 2015 {{r|IB_2015_AR|p=85-86}} | ! style="text-align: center;" | 2015 {{r|IB_2015_AR|p=85-86}} | ||
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! Returns Markets South | ! Returns Markets South | ||
(in millions GBP) | (in millions GBP) | ||
− | ! style="text-align: center;" | 2017 {{r| | + | ! style="text-align: center;" | 2017 {{r|IB_2017_AR|p=91-92}} |
! style="text-align: center;" | 2016 {{r|IB_2016_AR|p=90-91}} | ! style="text-align: center;" | 2016 {{r|IB_2016_AR|p=90-91}} | ||
! style="text-align: center;" | 2015 {{r|IB_2015_AR|p=85-86}} | ! style="text-align: center;" | 2015 {{r|IB_2015_AR|p=85-86}} | ||
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! USA | ! USA | ||
(in millions GBP) | (in millions GBP) | ||
− | ! style="text-align: center;" | 2017 {{r| | + | ! style="text-align: center;" | 2017 {{r|IB_2017_AR|p=91-92}} |
! style="text-align: center;" | 2016 {{r|IB_2016_AR|p=90-91}} | ! style="text-align: center;" | 2016 {{r|IB_2016_AR|p=90-91}} | ||
! style="text-align: center;" | 2015 {{r|IB_2015_AR|p=85-86}} | ! style="text-align: center;" | 2015 {{r|IB_2015_AR|p=85-86}} | ||
Line 1,822: | Line 1,816: | ||
(in USD) | (in USD) | ||
|- | |- | ||
− | | Nerudia acquired by Imperial Brands <ref name= | + | | Nerudia acquired by Imperial Brands <ref name =”IB_Crunchbase”> Crunchbase, [https://www.crunchbase.com/search/acquisitions/field/organizations/num_acquisitions/imperial-tobacco List of Imperial Brands's 5 acquisitions, including Nerudia and Barjan - Mistic Electronic Cigarettes Brand], Accessed September 2018 </REF> |
− | + | ||
+ | | Nerudia <ref name =”IB_Crunchbase”> Crunchbase, [https://www.crunchbase.com/search/acquisitions/field/organizations/num_acquisitions/imperial-tobacco List of Imperial Brands's 5 acquisitions, including Nerudia and Barjan - Mistic Electronic Cigarettes Brand], Accessed September 2018 </REF> | ||
| Imperial Brands | | Imperial Brands | ||
| 1/11/2017 | | 1/11/2017 | ||
| 0.00 | | 0.00 | ||
|- | |- | ||
− | | Rizla acquired by Imperial Brands | + | | Rizla acquired by Imperial Brands <ref name =”IB_Crunchbase”> Crunchbase, [https://www.crunchbase.com/search/acquisitions/field/organizations/num_acquisitions/imperial-tobacco List of Imperial Brands's 5 acquisitions, including Nerudia and Barjan - Mistic Electronic Cigarettes Brand], Accessed September 2018 </REF> |
| Rizla | | Rizla | ||
| Imperial Brands | | Imperial Brands | ||
Line 1,834: | Line 1,829: | ||
| 0.00 | | 0.00 | ||
|- | |- | ||
− | |Barjan - Mistic Electronic Cigarettes Brand acquired by Imperial Brands | + | | |
+ | Barjan - Mistic Electronic Cigarettes Brand acquired by Imperial Brands <ref name =”IB_Crunchbase”> Crunchbase, [https://www.crunchbase.com/search/acquisitions/field/organizations/num_acquisitions/imperial-tobacco List of Imperial Brands's 5 acquisitions, including Nerudia and Barjan - Mistic Electronic Cigarettes Brand], Accessed September 2018 </REF> | ||
+ | |||
| | | | ||
Barjan - Mistic Electronic Cigarettes Brand | Barjan - Mistic Electronic Cigarettes Brand | ||
Line 1,841: | Line 1,838: | ||
| 0.00 | | 0.00 | ||
|- | |- | ||
− | | Reemtsma Cigarettenfabriken GmbH acquired by Imperial Brands | + | | Reemtsma Cigarettenfabriken GmbH acquired by Imperial Brands <ref name =”IB_Crunchbase”> Crunchbase, [https://www.crunchbase.com/search/acquisitions/field/organizations/num_acquisitions/imperial-tobacco List of Imperial Brands's 5 acquisitions, including Nerudia and Barjan - Mistic Electronic Cigarettes Brand], Accessed September 2018 </REF> |
+ | |||
| Reemtsma Cigarettenfabriken GmbH | | Reemtsma Cigarettenfabriken GmbH | ||
| Imperial Brands | | Imperial Brands | ||
Line 1,847: | Line 1,845: | ||
| 0.00 | | 0.00 | ||
|- | |- | ||
− | | Davidoff acquired by Imperial Brands | + | | Davidoff acquired by Imperial Brands <ref name =”IB_Crunchbase”> Crunchbase, [https://www.crunchbase.com/search/acquisitions/field/organizations/num_acquisitions/imperial-tobacco List of Imperial Brands's 5 acquisitions, including Nerudia and Barjan - Mistic Electronic Cigarettes Brand], Accessed September 2018 </REF> |
+ | |||
| Davidoff | | Davidoff | ||
| Imperial Brands | | Imperial Brands | ||
Line 1,855: | Line 1,854: | ||
|} | |} | ||
− | === | + | ===Investments=== |
{| class="wikitable" | {| class="wikitable" | ||
! Name | ! Name | ||
Line 1,861: | Line 1,860: | ||
! Percentage of issued share capital | ! Percentage of issued share capital | ||
|- | |- | ||
− | | Barrow Hanley Mewhinney & Strauss LLC <ref name="IB_MarketScreener"> Market Screener, [ | + | | Barrow Hanley Mewhinney & Strauss LLC <ref name="IB_MarketScreener"> Market Screener, [https://www.marketscreener.com/IMPERIAL-BRANDS-9590191/company/ Imperial Brands], Accessed October 2018 </ref> |
| 13,535,355 | | 13,535,355 | ||
| 1.42 | | 1.42 | ||
Line 1,868: | Line 1,867: | ||
| 2,094,950 | | 2,094,950 | ||
| 0.22 | | 0.22 | ||
+ | |- | ||
+ | | American Beacon Advisors Inc {{r|IB_MarketScreener}} | ||
+ | | 883,460 | ||
+ | | 0.09 | ||
|- | |- | ||
|} | |} | ||
− | Imperial Brands has recently invested in a cannabis-focused biotech company that is researching how compounds in cannabis can be turned into medicine. <ref>[ | + | Imperial Brands has recently invested in a cannabis-focused biotech company that is researching how compounds in cannabis can be turned into medicine. <ref>[https://www.rollingstone.com/culture/culture-features/big-tobacco-pot-weed-cannabis-industry-727407/ Big Tobacco Is Already Eyeing Pot], ''The Rolling Stone'', September 2018, Accessed October 2018</ref> |
− | |||
− | |||
===Market Share=== | ===Market Share=== | ||
− | |||
In 2016, Imperial Tobacco was the world’s fifth-largest international cigarette company based on market share. {{r|IB_Statista}} | In 2016, Imperial Tobacco was the world’s fifth-largest international cigarette company based on market share. {{r|IB_Statista}} | ||
===Emerging Markets=== | ===Emerging Markets=== | ||
− | Growth or Emerging Markets are mainly large profit or volume pools where Imperial Market typically have market shares below 15 percent and where the total tobacco approach provides many opportunities for share and profit growth both now and in the future.{{r| | + | Growth or Emerging Markets are mainly large profit or volume pools where Imperial Market typically have market shares below 15 percent and where the total tobacco approach provides many opportunities for share and profit growth both now and in the future.{{r|IB_2017_AR|p=91}} |
− | Growth Markets include: Iraq, Norway, Russia, Saudi Arabia, Taiwan (also includes premium cigar and Fontem Ventures){{r| | + | Growth Markets include: Iraq, Norway, Russia, Saudi Arabia, Taiwan (also includes premium cigar and Fontem Ventures){{r|IB_2017_AR|p=91}} |
===Factory Openings and Closures=== | ===Factory Openings and Closures=== | ||
− | + | ||
{| class="wikitable" | {| class="wikitable" | ||
! Year | ! Year | ||
Line 1,892: | Line 1,892: | ||
| 2016 | | 2016 | ||
| Closure of the Logrono (GBP 108 million) and Mullingar (GBP 21 million) factories. {{r|IB_2016_AR|p=92}} | | Closure of the Logrono (GBP 108 million) and Mullingar (GBP 21 million) factories. {{r|IB_2016_AR|p=92}} | ||
+ | |- | ||
+ | |2016 | ||
+ | |Closure of the Mullingar factory in Ireland. {{r|IB_2016_AR|p=112}} | ||
+ | |- | ||
+ | | 2015 | ||
+ | | Proposed closure of the Nottingham factory. {{r|IB_2015_AR|p=107}} That is the last cigarette manufacturing facility in Britan. {{r|IB_Guardian}} | ||
|- | |- | ||
| 2014 | | 2014 | ||
− | | | + | | Announced proposed closure of cigarette factories in Nottingham and Nantes. {{r|IB_2014_AR|p=10}} The Nottingham factory was the last cigarette manufacturing facility in Britain. <ref name="IB_Guardian">[https://www.theguardian.com/business/2014/apr/15/nottingham-cigarette-factory-closure-jobs-imperial-tobacco Nottingham cigarette factory closure threatens more than 500 jobs], ''The Guardian'', April 2014, Accessed September 2018</ref> |
|- | |- | ||
|} | |} | ||
− | ==Products== | + | ===Dividends=== |
+ | Table below provides review of dividend payment history since 2014: | ||
+ | |||
+ | {| class="wikitable" | ||
+ | ! EX-DIVIDEND DATE | ||
+ | ! PAYMENT DATE | ||
+ | ! AMOUNT | ||
+ | |- | ||
+ | | 15-Jan-15 | ||
+ | | 15-Feb-15 | ||
+ | | 89.3p | ||
+ | <ref name="IB_WEB_DIVIDENDS"> Imperial Brands Plc, [http://www.imperialbrandsplc.com/Investors/Shareholder-centre/Dividends-history.html Dividend History], Accessed October 2018 </ref> | ||
+ | |- | ||
+ | | 28-May-15 | ||
+ | | 30-Jun-15 | ||
+ | | 21.4p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |- | ||
+ | | 27-Aug-15 | ||
+ | | 30-Sep-15 | ||
+ | | 21.4p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |- | ||
+ | | 19-Nov-15 | ||
+ | | 31-Dec-15 | ||
+ | | 49.1p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |- | ||
+ | | 4-Feb-16 | ||
+ | | 31-Mar-16 | ||
+ | | 49.1p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |- | ||
+ | | 19-May-16 | ||
+ | | 30-Jun-16 | ||
+ | | 23.5p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |- | ||
+ | | 18-Aug-16 | ||
+ | | 30-Sep-16 | ||
+ | | 23.5p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |- | ||
+ | | 17-Nov-16 | ||
+ | | 30 December 2016 | ||
+ | | 54.1p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |- | ||
+ | | 16-Feb-17 | ||
+ | | 31-Mar-17 | ||
+ | | 54.1p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |- | ||
+ | | 18-May-17 | ||
+ | | 30-Jun-17 | ||
+ | | 25.85p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |- | ||
+ | | 17-Aug-17 | ||
+ | | 29-Sep-17 | ||
+ | | 25.85p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |- | ||
+ | | 16-Nov-17 | ||
+ | | 29-Dec-17 | ||
+ | | 59.51p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |- | ||
+ | | 22-Feb-18 | ||
+ | | 29-Mar-18 | ||
+ | | 59.51p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |- | ||
+ | | 24-May-18 | ||
+ | | 29-Jun-18 | ||
+ | | 28.435p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |- | ||
+ | | 23-Aug-18 | ||
+ | | 28-Sep-18 | ||
+ | | 28.435p{{r|IB_WEB_DIVIDENDS}} | ||
+ | |} | ||
+ | |||
+ | ==Products== | ||
===Key Portfolio=== | ===Key Portfolio=== | ||
The company’s tobacco portfolio offers a range of papers and cigars, fine cut, smokeless tobaccos and cigarettes. Through their subsidiary Fontem Ventures, Imperial Brands is also strengthening their range of tobacco free smoking products, including the e-vapour brand blu. The tobacco brands of Imperial Brands are sold in 160 countries worldwide, including the United States where it has a market share of six percent with their ITG brands: Maverick, Winston and Kool, where each of them accounts for some two percent respectively. The share of the company’s revenue in the United States accounted for some 20.6 percent in 2016, amounting to about 1.5 billion USD in that year. {{r|IB_Statista}} | The company’s tobacco portfolio offers a range of papers and cigars, fine cut, smokeless tobaccos and cigarettes. Through their subsidiary Fontem Ventures, Imperial Brands is also strengthening their range of tobacco free smoking products, including the e-vapour brand blu. The tobacco brands of Imperial Brands are sold in 160 countries worldwide, including the United States where it has a market share of six percent with their ITG brands: Maverick, Winston and Kool, where each of them accounts for some two percent respectively. The share of the company’s revenue in the United States accounted for some 20.6 percent in 2016, amounting to about 1.5 billion USD in that year. {{r|IB_Statista}} | ||
− | + | In 2017, the company's Growth Brands (Davidoff, Gauloises Blondes, JPS, West, Fine, News, Winston, Bastos, Lambert & Butler and Parker & Simpson) accounted for approximately 60.2 percent of Imperial Brands' Group sales volumes. {{r|IB_Statista}} | |
− | |||
− | |||
− | '''Growth Brands''' <ref name="IB_Brands">Imperial Brands Plc, [ | + | '''Growth Brands''' <ref name="IB_Brands">Imperial Brands Plc, [http://www.imperialbrandsplc.com/About-us/Brand-portfolio.html Brand Portfolio], Accessed September 2018</REF> |
*Davidoff | *Davidoff | ||
*Gauloises | *Gauloises | ||
Line 1,915: | Line 1,989: | ||
*L&B | *L&B | ||
*Bastos | *Bastos | ||
− | * | + | *JSP |
*Fine | *Fine | ||
Line 1,931: | Line 2,005: | ||
*skruf | *skruf | ||
*Backwoods | *Backwoods | ||
− | |||
− | |||
===Heated Tobacco Products=== | ===Heated Tobacco Products=== | ||
− | Imperial | + | In Summer 2018, Imperial launched a product called myblu, in reaction Juul's entry into the US market. <ref>[https://www.reuters.com/article/us-imperial-brands-strategy/imperial-brands-eyes-2-billion-boost-from-vaping-products-idUSKCN1M50ZP Imperial Brands eyes $2 billion boost from vaping products], ''Reuters'', September 2018, Accessed 2018 </ref> |
− | |||
− | |||
− | A press release sent out on October 3 2018 by ResearchandMarkets.com noted Imperial Brands, in partnership with China National Tobacco, established a joint venture, Global Horizon Ventures Limited (GHVL) focused on long-term earnings potential and competitive position in the growing smokeless tobacco market. <ref> [ | + | A press release sent out on October 3 2018 by ResearchandMarkets.com noted Imperial Brands, in partnership with China National Tobacco, established a joint venture, Global Horizon Ventures Limited (GHVL) focused on long-term earnings potential and competitive position in the growing smokeless tobacco market. <ref> [https://www.businesswire.com/news/home/20181003005355/en/Snus-Worldwide-Market-Growth-Trends-Forecasts-2023 Snus: Worldwide Market Growth, Trends and Forecasts to 2023 featuring British American Tobacco, Imperial Brands, V2 Tobacco, Swedish Match, Gajane, and many more - ResearchAndMarkets.com], Business Wire, October 2018, Accessed October 2018 </ref> |
Imperial said it will debut its first heated-tobacco product Pulze in Japan. The company predicted that such smoking alternatives may add as much as 1.5 billion pounds (USD 2 billion) in revenue in 2020. [12] | Imperial said it will debut its first heated-tobacco product Pulze in Japan. The company predicted that such smoking alternatives may add as much as 1.5 billion pounds (USD 2 billion) in revenue in 2020. [12] | ||
− | |||
− | |||
− | |||
− | |||
===Volumes=== | ===Volumes=== | ||
+ | ====Volume of Cigarettes by Region==== | ||
{| class="wikitable" | {| class="wikitable" | ||
! Volumes (in billions stick equivalent) | ! Volumes (in billions stick equivalent) | ||
− | |||
− | |||
! style="text-align: center;" | 2017 | ! style="text-align: center;" | 2017 | ||
! style="text-align: center;" | 2016 | ! style="text-align: center;" | 2016 | ||
Line 1,960: | Line 2,025: | ||
|- | |- | ||
| Group Volume | | Group Volume | ||
− | + | | 265.2 {{r|IB_2017_AR|p=15}} | |
− | |||
− | | 265.2 {{r| | ||
| 276.5 {{r|IB_2016_AR|p=13}} | | 276.5 {{r|IB_2016_AR|p=13}} | ||
| 285.1 {{r|IB_2015_AR|p=9}} | | 285.1 {{r|IB_2015_AR|p=9}} | ||
Line 1,970: | Line 2,033: | ||
|- | |- | ||
| Growth Brands Volume | | Growth Brands Volume | ||
− | + | | 159.6 {{r|IB_2017_AR|p=8}} | |
− | + | | 151.3 {{r|IB_2016_AR|p=6}} | |
− | | 159.6 {{r| | ||
− | | 151. | ||
| 145.1 {{r|IB_2015_AR|p=12}} | | 145.1 {{r|IB_2015_AR|p=12}} | ||
| 131.0 {{r|IB_2014_AR|p=11}} | | 131.0 {{r|IB_2014_AR|p=11}} | ||
Line 1,979: | Line 2,040: | ||
| 129.0 {{r|IB_2013_AR|p=8}} | | 129.0 {{r|IB_2013_AR|p=8}} | ||
|- | |- | ||
− | + | | Growth Brands Volume (percent) | |
− | + | | 60.2 | |
− | + | | 54.7 | |
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | | Growth Brands Volume (percent) | ||
− | |||
− | |||
− | | 60.2 | ||
− | | 54.7 | ||
| 50.9 | | 50.9 | ||
| 44.6 | | 44.6 | ||
Line 2,001: | Line 2,050: | ||
==Marketing and External Relations== | ==Marketing and External Relations== | ||
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===Global Campaigns=== | ===Global Campaigns=== | ||
− | |||
− | |||
− | Imperial | + | A 2018 investigations uncovered social media advertising campaigns from Imperial Brands reaching millions online, including in the United States. <ref> TakeAPart, [https://www.takeapart.org/campaigns/advertising-on-social-media/united-states/imperial-brands/ How Imperial Brands advertises on social media], Accessed October 2018 </ref> |
− | + | In 2014, an Imperial Tobacco ad campaign promoting a free-to-download app listing smoking-friendly bars and venues has been banned by the Advertising Standards Authority for "normalising" and "condoning" smoking. Imperial Tobacco ran a series of poster ads under the name Smoke Spots, with no indication on the ads that the free app was provided by Imperial Tobacco. <ref>[https://www.campaignlive.co.uk/article/imperial-tobacco-ads-smoking-app-banned-asa/1321497 Imperial Tobacco ads for smoking app banned by ASA], Campaign Live, November 2014, Accessed October 2018 </ref> | |
− | |||
− | In 2014, an Imperial Tobacco ad campaign promoting a free-to-download app listing smoking-friendly bars and venues | ||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
===Corporate Social Responsibility=== | ===Corporate Social Responsibility=== | ||
+ | In May 2014, Guardian reported Imperial Tobacco Group was amongst the companies purchasing tobacco grown in the United States. According to Guardian, these companies current approaches 'did not sufficiently protect children from hazardous work and some companies allow for lower standards of protection for children in their US supply chain than for children working on tobacco farms in other countries'.<ref>[https://www.theguardian.com/commentisfree/2014/may/14/tobacco-farm-child-labor-laws Cigarette makers can't market to kids. Why do tobacco farms employ them?], ''Guardian'', May 2014, Accessed September 2018 </ref> | ||
− | Imperial | + | Imperial is a board member of the Eliminating Child Labour in Tobacco Growing Foundation (ECLT). <ref> ILO, [https://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_545944.pdf ILO cooperation with the tobacco industry in the pursuit of the Organization’s social mandate], November 2017, page 3, Accessed September 2018 </ref> A report published in April 2018 by Human Rights Watch said there was widespread child labour in tobacco farms in Zimbabwe, where multinationals including Imperial buy tobacco. <ref>[https://www.theguardian.com/world/2018/jun/25/tobacco-companies-child-labour-pressure Tobacco: activist investors pressure £20bn companies over child labour],''Guardian'', June 2018, Accessed October 2018</ref> The ECLT Board members include: International Tobacco Growers Association; Alliance One International; Altria Client Services; [[British American Tobacco]]; Contrax-Nicotex Tobacco; Hail & Cotton; Imperial Tobacco Group; [[Japan Tobacco International]]; [[Philip Morris International]]; Premium Tobacco; Scandinavian Tobacco Group; Sunel Ticaret Turk; Swedish Match; and Universal Leaf Tobacco. <ref> ILO, [https://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_545944.pdf ILO cooperation with the tobacco industry in the pursuit of the Organization’s social mandate], November 2017, page 3, Accessed September 2018 </ref> |
− | + | ===Sponsorship=== | |
− | + | Imperial Tobacco is one of the sponsors of the 2018 Middle East & Africa Duty Free Association (MEADFA) Conference will be held under the patronage of H.E. Mr. Saad Hariri, Lebanese President of the Council of Ministers, in Beirut, Lebanon, on 19-20 November 2018. <ref>[https://www.moodiedavittreport.com/more-than-400-delegates-expected-at-meadfa-2018-in-beirut-this-november/ More than 400 delegates expected at MEADFA 2018 in Beirut this November], ''The Moodie Davitt Report'', October 2018, Accessed October 2018</ref> | |
− | + | ===Marketing to Kids=== | |
− | + | An investigation exposing how tobacco companies market cigarettes on social media around the world revealed Imperial Tobacco products were seen near schools in 22 countries in a smaller number. A spokesman for Imperial Brands said to company ensures: | |
− | + | "that our product and brand communications are not aimed at, or made appealing to, people under the age of 18 or non-smokers, and that we operate in accordance with local laws”. <ref>[https://www.theguardian.com/world/2018/mar/09/how-children-around-the-world-are-exposed-to-cigarette-advertising How children around the world are exposed to cigarette advertising], ''Guardian'', March 2018, Accessed October 2019 </ref> | |
− | Imperial | + | In the United States, investigations into Imperial Brands’ efforts to market to kids have uncovered an explosion of sweet-flavored tobacco products, especially e-cigarettes and cigars. <ref>TakeAPart, [https://www.takeapart.org/campaigns/marketing-to-kids/united-states/imperial-brands/ How Imperial Brands Markets Products to Kids], Accessed October 2018 </ref> |
− | |||
− | |||
− | |||
− | |||
===Political Spending=== | ===Political Spending=== | ||
Line 2,052: | Line 2,079: | ||
! style="text-align: center;" | 2012 | ! style="text-align: center;" | 2012 | ||
|- | |- | ||
− | | Democrats <ref name="IB_OpenSecrets"> Open Secrets, [ | + | | Democrats <ref name="IB_OpenSecrets"> Open Secrets, [https://www.opensecrets.org/orgs/totals.php?id=D000043289&cycle=2016 Imperial Tobacco Group], Accessed October 2018 </ref> |
| 12,500 | | 12,500 | ||
| 4,000 | | 4,000 | ||
Line 2,141: | Line 2,168: | ||
|} | |} | ||
− | ==Reporting and | + | ==Reporting and regulation== |
− | |||
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− | |||
− | |||
− | |||
− | |||
===Tobacco Litigation=== | ===Tobacco Litigation=== | ||
− | |||
− | |||
− | |||
A full list of tobacco industry litigation cases can be found [[Tobacco Control Litigation | <strong>here</strong>]]. | A full list of tobacco industry litigation cases can be found [[Tobacco Control Litigation | <strong>here</strong>]]. | ||
− | + | In February 2018, Dutch prosecutors rejected attempted murder case brought against the world's largest tobacco [[Philip Morris International]], [[British American Tobacco]], [[Japan Tobacco International]] and Imperial Tobacco by mother with lung cancer. The Dutch Public Prosecution Service (DPPS) explained in a statement that: | |
+ | "Smoking is deadly and the design of cigarettes does add to this but according to the DPPS, the tobacco manufacturers have not acted in violation of either the law or the current regulatory framework,” the service said in an English-language statement." <ref>[https://www.independent.co.uk/news/business/news/smoking-netherlands-attempted-murder-case-philip-morris-british-american-tobacco-benedicte-ficq-lung-a8223381.html Dutch prosecutors reject attempted murder case brought against tobacco giants by mother with lung cancer], ''The Independent'', February 2018, Accessed October 2018 </ref> | ||
− | + | ==Partners and Allies== | |
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− | |||
− | ==Partners and Allies== | ||
In 2017, the organization has paid between EUR 400,000 and EUR 499,999 on activities related to lobbying and registration fees within the EuropeanUnion. {{r|IB_TransparencyRegister}} | In 2017, the organization has paid between EUR 400,000 and EUR 499,999 on activities related to lobbying and registration fees within the EuropeanUnion. {{r|IB_TransparencyRegister}} | ||
Line 2,216: | Line 2,188: | ||
===Lobbying=== | ===Lobbying=== | ||
− | |||
− | |||
− | |||
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− | |||
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− | |||
Main European Union initiatives, policies and legislative files followed by the organization are: | Main European Union initiatives, policies and legislative files followed by the organization are: | ||
− | *The implementation of Directive 2014/40/EU on the approximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture, presentation, and sale of tobacco and related products. {{r|IB_TransparencyRegister}} | + | *The implementation of Directive 2014/40/EU on the approximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture , presentation, and sale of tobacco and related products. {{r|IB_TransparencyRegister}} |
*Review of Directive 2011/64/EC, on the structure and rates of excise duty applied to manufactured tobacco. {{r|IB_TransparencyRegister}} | *Review of Directive 2011/64/EC, on the structure and rates of excise duty applied to manufactured tobacco. {{r|IB_TransparencyRegister}} | ||
*Review of Council Directive 2008/118/EC concerning the general arrangements for excise duty and repealing Directive 92/12/EEC {{r|IB_TransparencyRegister}} | *Review of Council Directive 2008/118/EC concerning the general arrangements for excise duty and repealing Directive 92/12/EEC {{r|IB_TransparencyRegister}} | ||
− | + | The organization employs three part-time and four full-time lobbyists. The European Union Register lists the following employees: | |
− | {| class="wikitable" style=" | + | {| class="wikitable" |
− | + | ! style="font-weight:bold;width=10%" |Name | |
− | + | ! style="font-weight:bold;width=10%" |Contract Status | |
− | + | ! style="font-weight:bold;width=20%" |Start Date | |
− | + | ! style="font-weight:bold;width=30%" |End Date | |
− | + | |- | |
+ | |Valerio Forconi {{r|IB_TransparencyRegister}} | ||
+ | |Active | ||
+ | |27 October 2017 | ||
+ | |31 October 2018 | ||
+ | |- | ||
+ | |Maria Georgiadou {{r|IB_TransparencyRegister}} | ||
+ | |Active | ||
+ | |20 April 2018 | ||
+ | |31 October 2018 | ||
|- | |- | ||
− | | | + | |Dries Maebe {{r|IB_TransparencyRegister}} |
− | | | + | |Active |
− | | | + | |27 October 2017 |
− | | | + | |19 October 2018 |
|- | |- | ||
− | | | + | |Claudia Ungarelli {{r|IB_TransparencyRegister}} |
− | | | + | |Active |
− | | | + | |20 April 2018 |
− | | | + | |31 October 2018 |
|- | |- | ||
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|} | |} | ||
− | + | In 2017, Fontem Ventures, affiliated with Imperial Tobacco used the services of Aspect Consulting for lobbying in Brussels. <ref>Transparency Register, [http://ec.europa.eu/transparencyregister/public/consultation/displaylobbyist.do?id=15392729381-19 Aspect Consulting], Accessed October 2018 </ref> | |
− | + | ===Memberships=== | |
− | + | The website TobaccoTactics, offers [http://www.tobaccotactics.org/index.php?title=Imperial_Tobacco an updated list] of organizations Imperial Tobacco was a member or supporter of in 2017. | |
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− | + | ===Politics=== | |
+ | Scottish National Party accepted conference fees from [[Japan Tobacco International]] and Imperial Tobacco. Both companies were at the SNP Party Conference after buying "business day" passes advertised at GBP 1,750 each. <ref> [https://www.heraldscotland.com/news/16981736.snp-in-row-over-conference-fees-from-tobacco-giants/ SNP in row over conference fees from tobacco giants], ''The Herald'', October 2018, Accessed October 2018 </ref> | ||
− | + | In 2010, European Commission announced a multi-year agreement with Imperial Tobacco to work together in tackling the illicit trade in tobacco products. Under the legally binding agreement, ITL will work with the European Commission, its anti-fraud office OLAF, and Member States’ law enforcement authorities to help in the fight against contraband and counterfeit cigarettes. The Agreement included a USD 300 million contribution (over the next 20 years) by Imperial Tobacco. <ref>European Commission EUROPEAN ANTI-FRAUD OFFICE, [https://ec.europa.eu/anti-fraud/investigations/eu-revenue/imperial_tobacco_en Imperial Tobacco Limited (ITL) 2010], Accessed October 2018 </ref> | |
− | + | ===Consultancies, Banking and Finance=== | |
+ | {| class="wikitable" | ||
+ | ! style="font-weight:bold;width=10%" |Name | ||
+ | ! style="font-weight:bold;width=10%" |Contract Status | ||
+ | ! style="font-weight:bold;width=20%" |Notes | ||
+ | ! style="font-weight:bold;width=30%" |Notable Clients | ||
+ | |- | ||
+ | |[https://www.pwc.com/ PricewaterhouseCoopers LLP] (PwC) (2017) | ||
+ | |Active | ||
+ | |PwC are Imperial Tobacco's auditors. {{r|IB_2017_AR|p=43,71}} | ||
+ | | | ||
+ | *Bank of America | ||
+ | *American International Group | ||
+ | *Chase | ||
+ | *Goldman Sachs | ||
+ | *Prudential Financial | ||
+ | *IBM | ||
+ | *United Technologies | ||
+ | <ref>Big 4 Accounting Firms, [https://big4accountingfirms.com/pwc-audit-clients-list/ PwC Clients], Accessed October 2018 </ref> | ||
+ | |- | ||
+ | |[https://home.kpmg.com/uk/en/home.html KPMG] (2017) | ||
+ | |TBC | ||
+ | |KPMG LLP UK prepared a report on Illicit tobacco in New Zealand for Imperial Tobacco New Zealand Limited.<ref>[https://home.kpmg.com/content/dam/kpmg/uk/pdf/2018/07/new_zealand_Illicit_trade_in_tobacco.pdf Illicit tobacco in New Zealand 2017 Full Year Report] KPMG, May 2018, Page 2, Accessed October 2018 </ref> | ||
+ | | | ||
+ | *Siemens <ref>KPMG,[https://home.kpmg.com/xx/en/home/about/clients/supporting-tax-compliance-leading-multinational.html Supporting tax compliance for a leading multinational],Accessed October 2018 </ref> | ||
+ | *Dangote Group <ref>KPMG,[https://home.kpmg.com/xx/en/home/about/clients/advising-one-of-africas-fastest-growing-companies.html Advising Africa's companies],Accessed October 2018 </ref> | ||
+ | *The State of Hawaii <ref>KPMG,[https://home.kpmg.com/xx/en/home/about/clients/empowering-access-to-healthcare.html Empowering access],Accessed October 2018 </ref> | ||
+ | |- | ||
+ | |[https://www.pinsentmasons.com/ Pinsent Masons LLP] (2017) | ||
+ | |Active | ||
+ | |Pinsent Masons LLP provided legal advice in respect of the operation of the Group’s employee share plans. {{r|IB_2017_AR|p=71}} | ||
+ | | | ||
+ | *Transport for London | ||
+ | *Teva Pharmaceuticals | ||
+ | *E.ON | ||
+ | |- | ||
+ | |[http://www.allenovery.com/pages/default.aspx Allen & Overy LLP] (2017) | ||
+ | |Active | ||
+ | |Allen & Overy LLP is available to provide legal advice to Imperial Tobacco's Renumeration Committee as and when required. It was not used for remuneration-related advice during the financial year. Allen & Overy LLP also provided other legal services to the Group. {{r|IB_2017_AR|p=71}} | ||
+ | | NA | ||
+ | |- | ||
+ | |} | ||
− | === | + | ===Marketing and Public Relations=== |
− | |||
− | ==== | + | {| class="wikitable" |
− | + | ! style="font-weight:bold;width=10%" |Name | |
− | + | ! style="font-weight:bold;width=10%" |Contract Status | |
− | + | ! style="font-weight:bold;width=20%" |Notes | |
− | + | ! style="font-weight:bold;width=30%" |Other Clients | |
− | + | |- | |
− | = | + | |[https://www.msqpartners.com/ MSQ Partners](2018) |
− | + | |Active | |
− | + | |Blu, the vaping brand owned by Imperial Tobacco, has appointed MSQ Partners and Fold7-backed brand experience agency Hyperactive to work on the launch campaign. <ref>[https://www.campaignlive.com/article/blu-lines-agencies-launch-marketing-new-vaping-product/1466361 Blu lines up agencies to launch marketing for new vaping product], ''Campaign'', June 2018, Accessed September 2018 </REF> | |
− | + | | | |
− | + | *British Airways | |
− | + | *Chiltern Railways | |
− | + | *Nasdaq | |
− | + | *Clinique | |
− | + | *Close Brothers | |
− | + | *CocaCola | |
+ | *Diageo | ||
+ | *Proctor&Gamble | ||
+ | *Unilever | ||
+ | *Walmart | ||
+ | *Peugeot | ||
+ | *TalkTalk | ||
+ | *Merck | ||
+ | *Nivea Men | ||
+ | *Her Majesties Government | ||
+ | *Johnnie Walker | ||
+ | *Hertz | ||
+ | *Lotus | ||
+ | <ref>MSQ, [https://www.msqpartners.com/work Work], Accessed October 2018 </ref> | ||
+ | |- | ||
+ | |[http://wearehyperactive.com/ Hyperactive] (2018) | ||
+ | |Active | ||
+ | |Blu, the vaping brand owned by Imperial Tobacco, has appointed MSQ Partners and Fold7-backed brand experience agency Hyperactive to work on the launch campaign. <ref>[https://www.campaignlive.com/article/blu-lines-agencies-launch-marketing-new-vaping-product/1466361 Blu lines up agencies to launch marketing for new vaping product], ‘’Campaign’’, June 2018, Accessed September 2018 </REF> | ||
+ | | | ||
+ | *Carlsberg | ||
+ | *Argos | ||
+ | *NPower | ||
+ | *Guinness World Records | ||
+ | *Eurostar | ||
+ | *Chelsea FC | ||
+ | *Tag Heuer | ||
+ | *Beats By Dre | ||
+ | <ref>Hyperactive, [http://wearehyperactive.com/work/ Work], Accessed October 2018 </ref> | ||
+ | |- | ||
+ | |[https://www.proximityworld.com/ Proximity] (2015) | ||
+ | |NA | ||
+ | |In March 2014, Proximity picked up Imperial Tobacco’s global creative account. WPP’s Deepblue Networks was the incumbent. <ref>[https://www.campaignlive.co.uk/article/agencies-line-imperial-tobacco-task/1356136 Agencies line up for Imperial Tobacco task], ‘’Campaign’’, July 2015, Accessed September 2018 </REF> | ||
+ | | | ||
+ | *Cochlear | ||
+ | *The Economist | ||
+ | *Volkswagen | ||
+ | *Dubai Tourism | ||
+ | *Midas | ||
+ | *Wateraid | ||
+ | *Audi Spain | ||
+ | *Me Bank | ||
+ | *Foxtel | ||
+ | <ref>Proximity, [https://www.proximityworld.com/work Work], Accessed October 2018 </ref> | ||
+ | |- | ||
+ | |[https://www.fticonsulting-asia.com/?rl=apac FTI] (2016) | ||
+ | |TBC | ||
+ | |FTI Consulting, Inc. is a global business advisory firm. <ref>FTI Consulting, [https://www.fticonsulting-asia.com/about/what-we-do What we do], Accessed October 2018 </ref> | ||
+ | | | ||
+ | *Arora Group | ||
+ | *[[British American Tobacco]] | ||
+ | *Innogy Renewables | ||
+ | *Interconnector UK <ref> Register of consultant lobbyists, [https://registerofconsultantlobbyists.force.com/CLR_Public_Profile?id=00124000006ZigqAAC FTI Consulting LLP], Accessed September 2018 </REF> | ||
+ | |- | ||
+ | |Bell Pottinger (2017) | ||
+ | |Inactive | ||
+ | |Imperial Brands used Bell Pottinger for two decades until a scandal over Bell Pottinger's secret campaign to stir up racial tensions in South Africa came to surface. <ref> [https://www.theguardian.com/media/2017/sep/07/bell-pottinger-could-go-under-within-days-sources-claim Bell Pottinger could go under within days, sources claim], ''Guardian'', September 2017, Accessed September 2018 </REF> | ||
+ | | | ||
+ | |- | ||
+ | |} | ||
==References== | ==References== | ||
Line 2,302: | Line 2,358: | ||
{{Reflist| | {{Reflist| | ||
refs= | refs= | ||
− | <ref name ="IB_2013_AR">[http://www.imperialbrandsplc.com/content/dam/imperial-brands/corporate/investors/annual-report-and-accounts/annual_report_2013.pdf.downloadasset.pdf Imperial Brands, 2013, ''Focused on sustainable growth, Annual Report and accounts 2013''] Accessed: September, 2018 | + | <ref name ="IB_2013_AR">[http://www.imperialbrandsplc.com/content/dam/imperial-brands/corporate/investors/annual-report-and-accounts/annual_report_2013.pdf.downloadasset.pdf Imperial Brands, 2013, ''Focused on sustainable growth, Annual Report and accounts 2013''] Accessed: September, 2018</ref> |
<ref name ="IB_2014_AR">[http://www.imperialbrandsplc.com/content/dam/imperial-brands/corporate/investors/annual-report-and-accounts/Annual%20Report%202014.pdf.downloadasset.pdf Imperial Brands, 2014, ''A stronger business, Annual Report and accounts 2014''] Accessed: September, 2018</ref> | <ref name ="IB_2014_AR">[http://www.imperialbrandsplc.com/content/dam/imperial-brands/corporate/investors/annual-report-and-accounts/Annual%20Report%202014.pdf.downloadasset.pdf Imperial Brands, 2014, ''A stronger business, Annual Report and accounts 2014''] Accessed: September, 2018</ref> | ||
<ref name ="IB_2015_AR">[http://www.imperialbrandsplc.com/content/dam/imperial-brands/corporate/investors/annual-report-and-accounts/full-annual-report-2015.pdf.downloadasset.pdf Imperial Brands, 2015, ''Imperial Tobacco Group PLC, Annual Report and accounts 2015''] Accessed: September, 2018</ref> | <ref name ="IB_2015_AR">[http://www.imperialbrandsplc.com/content/dam/imperial-brands/corporate/investors/annual-report-and-accounts/full-annual-report-2015.pdf.downloadasset.pdf Imperial Brands, 2015, ''Imperial Tobacco Group PLC, Annual Report and accounts 2015''] Accessed: September, 2018</ref> | ||
<ref name ="IB_2016_AR">[http://www.imperialbrandsplc.com/content/dam/imperial-brands/corporate/investors/annual-report-and-accounts/online-annual-report-pdfs/Imperial_Brands_annual_report_2016.pdf.downloadasset.pdf Imperial Brands, 2016, ''Delivering against our strategy, Annual Report and accounts 2016''] Accessed: September, 2018</ref> | <ref name ="IB_2016_AR">[http://www.imperialbrandsplc.com/content/dam/imperial-brands/corporate/investors/annual-report-and-accounts/online-annual-report-pdfs/Imperial_Brands_annual_report_2016.pdf.downloadasset.pdf Imperial Brands, 2016, ''Delivering against our strategy, Annual Report and accounts 2016''] Accessed: September, 2018</ref> | ||
+ | <ref name ="IB_2017_AR">[http://....pdf Imperial Brands, 2017, ''Investing for growth, Annual Report and accounts 2017''] Accessed: September, 2018</ref> | ||
<ref name="IB_WEB_LEADERSHIP">Imperial Brands, [http://www.imperialbrandsplc.com/About-us/Leadership-team.html Leadership Team], Accessed September 2018</ref> | <ref name="IB_WEB_LEADERSHIP">Imperial Brands, [http://www.imperialbrandsplc.com/About-us/Leadership-team.html Leadership Team], Accessed September 2018</ref> | ||
<nowiki><ref name="IB_WEB_ABOUT-US">Imperial Brands, [http://www.imperialbrandsplc.com/About-us.html About Us], Accessed September 2018</ref></nowiki> | <nowiki><ref name="IB_WEB_ABOUT-US">Imperial Brands, [http://www.imperialbrandsplc.com/About-us.html About Us], Accessed September 2018</ref></nowiki> | ||
<ref name="IB_WEB_MARKET-FOOTPRINT">Imperial Brands, [http://www.imperialbrandsplc.com/About-us/Market-footprint.html Market footprint], Accessed September 2018</ref> | <ref name="IB_WEB_MARKET-FOOTPRINT">Imperial Brands, [http://www.imperialbrandsplc.com/About-us/Market-footprint.html Market footprint], Accessed September 2018</ref> | ||
− | <nowiki><ref name="IB_WEB_BRAND-PORTFOLIO">Imperial Brands, [http://www.imperialbrandsplc.com/About-us/Brand-portfolio.html Brand portfolio], Accessed | + | <nowiki><ref name="IB_WEB_BRAND-PORTFOLIO">Imperial Brands, [http://www.imperialbrandsplc.com/About-us/Brand-portfolio.html Brand portfolio], Accessed September 2018</ref></nowiki> |
}} | }} |